ISLAMABAD: The government is likely to maintain the current export tariffs and tax slabs in the forthcoming budget, according to Abdul Razak Dawood, Advisor to the Prime Minister on Commerce and Investment.
(more…)Tag: budget 2020-2021
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PSX proposes abolishing capital gains tax for two years
KARACHI: Pakistan Stock Exchange (PSX) has demanded eliminating Capital Gains Tax (CGT) for up to next two years in order to attract more foreign investment.
The PSX in its tax proposals for budget 2020/2021 suggested the Federal Board of Revenue (FBR) to eliminate / reduce CGT for next 24 months or at a minimum align rates of capital gains tax on disposal of securities with other regional exchanges and OECD countries of the world.
The PSX said that currently, carry forward of losses is only allowed up to a period of three years and that last year CGT collection was merely Rs1.3 billion. Moreover, with the falling market, tax collection will not be worthwhile at all.
“Therefore, it is suggested that CGT should be eliminated for next 12-24 months.”
This will be a big headline change, with no revenue impact, and will encourage new domestic and international investors to come into the market.
The PSX made following proposals related to CGT:
i. To eliminate CGT for next 12-24 months, if that is not possible then;
ii. Since the current rate of 15 percent is very high and that too is without any benefit of holding period, therefore it is proposed to reduce this rate in line with other regional and OECD countries such as Bahrain, Hong Kong, India, Malaysia, Mauritius, Qatar, UAE, New Zealand, Hungary, Norway etc. where there is no or very low capital gain tax as compared to Pakistan.
iii. when CGT was first introduced in the year 2011, to encourage and attract long term investment, the tax rate was:
Less than six months: 10 percent
More than six months but less than 12 months: 7.5 percent
More than one year: zero percent.
The PSX proposed rates at:
Holding period up to twelve months: 10 percent
Holding period more than twelve months: zero percent.
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Tax relief package to mitigate COVID-19 shocks under consideration, FBR tells KCCI
KARACHI: A top official of Federal Board of Revenue (FBR) has informed the office bearers of Karachi Chamber of Commerce and Industry (KCCI) that a tax relief package for business community was under consideration in order to dilute the adverse impact of coronavirus pandemic (COVID-19).
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FBR invites sales tax proposals to eliminate flying invoices, tax fraud
The Federal Board of Revenue (FBR) has issued an invitation to business chambers and associations to submit their sales tax and federal excise proposals for the upcoming budget 2020/2021. The primary aim is to eliminate flying invoices and tax fraud while broadening the tax base and increasing revenue.
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FBR asked to suggest measure to eliminate exemptions
ISLAMABAD: The ministry of finance has asked Federal Board of Revenue (FBR) to suggest measure to eliminate exemptions and concessions.
The Finance Division (Budget Wing) of the finance ministry asked the FBR to provide information for development of budget strategy paper 2020-2021 – 2022-2023.
The finance division asked the FBR to provide information on the key points:
01. Tax policy over the medium-term including measure to eliminate exemption / concessions.
02. Planned tax administration reforms to enhance tax-base and improve tax-to-GDP ratio.
03. Number and types of new sectors, which were out of the tax net, to be added in the tax system.
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Federal budget 2020/2021 tentative schedule issued for May
ISLAMABAD: The government is planning to present federal budget 2020/2021 in the cabinet and the parliament in the month of May this year.
The finance ministry on Wednesday issued budget call circular for the schedule of budget making process and its presentation in the parliament.
The finance ministry has given tentative schedule of presenting the budget 2020/2021 in May 2020 before the cabinet and the parliament.
The circular further said that the completion of all budget documents, schedules and summaries for the cabinet shall be completed by last week of April 2020.
On April 10, 2020 the principal account office shall submit BO/NIS forms, already entered into SAP system by respective PAOs, for development expenditure to the Budget Wing, Finance Division. Fair copies of the NISs for Development / Capital budget may be sent to Budget Implementation-II Section of Budget Wing, Finance Division after the same have been countersigned by the relevant Technical Section / Programming Section of the Planning, Development and Special Initiatives Division.
On the same date the office shall submit BO/NIS forms, already entered into SAP system by respective PAOs, for current expenditure to the Budget Wing, Finance Division.
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Sindh issues schedule for announcing budget 2020/2021
KARACHI: Sindh government has announced to present provincial budget for 2020/2021 in first or second week of June 2020.
According to schedule issued by Sindh Finance Department the budget for the fiscal year 2021/2020 likely to be presented to the cabinet and the provincial assembly by the finance minister in the first or second week of June 2020.
According to the schedule by May 28, 2020, the finance department would complete all budget documents, schedules, and summaries for the cabinet.
The planning and development department would present finalized Annual Development Program (ADP) – 2020/2021 by third or fourth week of May 2020.
The meeting of National Economic Council (NEC) is scheduled for first week of May 2020.
The finance department would finalize new taxation proposals and review existing taxes and fees by April 30, 2020.
The meeting of Annual Plan Coordination Committee (APCC) to be held by fourth week of April 2020.
The finance department would finalize Medium Term Budge Framework (MTBF) 2022/2023 by March 31, 2020.
The finance department would finalize of revised estimates for 2019/2020, budget estimates for 2020/2021 and SNE 2020/2021 for recruitment budget by March 31, 2020.
Last date for incorporation of any modification in the ADP 2020/2021 for Annual Plan Coordination Committee by April 20, 2020.
The Sindh government issued budget circular which is integrated the formulation of the Recurrent (non-development) & Development budget and it is being issued in consultation with Planning & Development Department.
Accordingly two additional forms (Form BCC-X and BCC-XI) have been incorporated in the circular for the formulation of development budget.
The Planning & Development Department will have the lead role in development budget formulation, whereas, the Finance department will be formulating the non-development Budget, Receipts and MTBF.
All Administrative Departments are required to submit budgetary proposals on prescribed forms which will be scrutinized by Finance Department and Planning & Development Department in detail, as per prevailing practice.